Health and Accident Insurance Practice Test
| | | | | |
questions with correct detailed answers
| | | |
Which |of |the |following |is |a |true |statement |about |dependent |coverage |on |group |health |policies?
Select |one:
a. |The |dependent |can |be |a |natural |child, |step |child |or |adopted |child.
b. |A |child |can |be |considered |dependent |after |age |19 |if |he/she |was |disabled |before |that |time.
c. |A |child |can |be |considered |dependent |after |19 |if |a |full |time |student.
d. |All |of |the |above |- |correct |answer |A |dependent |can |be |any |of |those |listed. |Usually |coverage |lasts |
until |they |reach |19, |but |if |the |child |was |mentally |or |physically |disabled |prior |to |turning |19, |or |if |the |
child |is |a |full |time |student, |coverage |can |be |extended.
The |correct |answer |is: |All |of |the |above
Which |of |the |following |is |a |benefit |of |a |prescription |drug |policy?
Select |one:
a. |Prescriptions |are |usually |free.
b. |Prescriptions |are |for |a |set |price.
c. |Prescriptions |are |for |a |set, |lower |price.
d. |Prescriptions |can |be |refilled |at |any |time. |- |correct |answer |Under |a |prescription |policy, |prescription |
drugs |are |not |only |at |a |set |price, |but |a |much |lower |price |- |usually |$2, |$3 |or |$5, |regardless |of |the |
actual |cost |of |the |drug.
The |correct |answer |is: |Prescriptions |are |for |a |set, |lower |price.
Which |of |the |following |is |part |of |the |loss |of |earnings |test |for |disability?
Select |one:
a. |Inability |to |perform |duties |of |the |insured's |own |occupation |for |2 |to |5 |years
b. |Inability |to |perform |the |duties |of |any |suitable |occupation
c. |Both |of |the |above
,d. |None |of |the |above |- |correct |answer |The |loss |of |earnings |test |for |disability |includes |both |the |
inability |to |perform |duties |of |the |insured's |own |occupation |for |2 |to |5 |years |and |the |inability |to |
perform |the |duties |of |any |suitable |occupation.
The |correct |answer |is: |Both |of |the |above
If, |after |a |hearing, |the |Superintendent |finds |that |an |individual |has |engaged |in |an |unfair |practice, |the |
Superintendent |can |take |all |the |following |actions, |EXCEPT:
Select |one:
a. |Suspend |the |individual's |license
b. |Revoke |the |individual's |license
c. |Assess |a |civil |penalty
d. |Jail |the |individual |- |correct |answer |When |an |individual |is |found |to |have |committed |an |unfair |trade |
practice, |the |Superintendent |has |the |power |to |revoke, |suspend, |refuse |to |issue |or |renew, |and |assess |
civil |penalties |and |administrative |costs |incurred |by |the |department.
The |correct |answer |is: |Jail |the |individual
What |benefits |might |your |disability |policy |pay |if |you |have |experienced |an |accident, |but |you |can |work
|part |time |as |you |recover |fully?
Select |one:
a. |Regular |benefits |for |the |first |six |months |and |a |reduced |benefit |thereafter
b. |Partial |benefits |based |on |ability |to |perform |certain |duties
c. |No |benefits, |since |you |can |perform |some |of |the |duties |of |your |occupation
d. |A |delayed |benefit |if |your |condition |does |not |improve |- |correct |answer |Answer: |C
For |which |of |the |following |types |of |employees |is |an |employer |group |health |plan |considered |the |
primary |plan?
Select |one:
a. |Disabled |employees
b. |Employees |with |kidney |failure
c. |Employees |age |65 |or |older
d. |All |of |the |above |- |correct |answer |Answer: |A
,A |vision |plan |will |usually |include |benefits |for |all |of |the |following, |EXCEPT:
Select |one:
a. |Annual |eye |examination
b. |Eye |surgery
c. |Contact |lenses
d. |Eyeglass |frames |- |correct |answer |Vision |plans |will |include |periodic |eye |exams, |glasses, |and |
contacts.
The |correct |answer |is: |Eye |surgery
Which |of |the |following |is |one |of |the |major |differences |between |private |and |government |insurance?
Select |one:
a. |Private |insurance |can |deny |coverage |to |individuals.
b. |Government |insurance |can |be |either |federal |or |state.
c. |Both |private |and |government |have |disability |coverage.
d. |Government |insurance |is |more |efficiently |run |- |correct |answer |In |order |to |stay |in |business, |private |
insurance |can |deny |coverage |to |high-risk |individuals |and |minimize |their |losses.
The |correct |answer |is: |Private |insurance |can |deny |coverage |to |individuals.
Where |must |the |wording |'Accident |Only |Plan' |be |prominently |displayed |on |an |accident |only |policy?
Select |one:
a. |It |must |be |in |bold |type |in |the |exclusions |section.
b. |It |must |be |in |bold |type |in |the |time |limit |for |certain |defenses |section.
c. |It |must |be |in |bold |type |on |the |front |page |of |the |policy.
d. |It |must |be |in |bold |type |on |a |special |insert |before |delivery. |- |correct |answer |To |avoid |confusion, |
ACCIDENT |ONLY |or |similar |wording |must |be |prominently |displayed |on |the |front |page |of |an |accident |
policy.
The |correct |answer |is: |It |must |be |in |bold |type |on |the |front |page |of |the |policy.
All |of |the |following |are |commonly |used |when |investigating |the |insurability |of |an |applicant, |EXCEPT:
, Select |one:
a. |An |attending |physician's |statement
b. |A |credit |report
c. |Contacting |the |Medical |Information |Bureau |(MIB)
d. |Talking |to |the |neighborhood |watch |- |correct |answer |Insurers |typically |utilize |the |physician's |
statement, |credit |report |and |MIB |when |determining |insurability |of |an |applicant. |They |do |not |talk |to |
the |neighborhood |watch.
The |correct |answer |is: |Talking |to |the |neighborhood |watch
Insurance |contracts |pay |for |losses |on |an:
Select |one:
a. |Indemnity |basis
b. |Cash |payment |basis
c. |Valued |basis
d. |All |of |the |above |- |correct |answer |Insurance |contracts |pay |for |losses |on |an |indemnity, |valued |or |
cash |basis.
The |correct |answer |is: |All |of |the |above
Using |an |insurance |license |to |sell |mainly |to |relatives |is |referred |to |as:
Select |one:
a. |A |familial |business
b. |An |incestuous |business
c. |A |paternal |business
d. |A |controlled |business |- |correct |answer |An |agent |is |not |allowed |to |use |a |license |for |the |principal |
purpose |of |procuring |controlled |business |(insurance |sold |to |relatives, |employers, |or |employees).
The |correct |answer |is: |A |controlled |business
When |presenting |long-term |care |or |Medicare |Supplement |plans, |it |is |necessary |to |provide |the |
prospect |with |a:
Select |one:
| | | | | |
questions with correct detailed answers
| | | |
Which |of |the |following |is |a |true |statement |about |dependent |coverage |on |group |health |policies?
Select |one:
a. |The |dependent |can |be |a |natural |child, |step |child |or |adopted |child.
b. |A |child |can |be |considered |dependent |after |age |19 |if |he/she |was |disabled |before |that |time.
c. |A |child |can |be |considered |dependent |after |19 |if |a |full |time |student.
d. |All |of |the |above |- |correct |answer |A |dependent |can |be |any |of |those |listed. |Usually |coverage |lasts |
until |they |reach |19, |but |if |the |child |was |mentally |or |physically |disabled |prior |to |turning |19, |or |if |the |
child |is |a |full |time |student, |coverage |can |be |extended.
The |correct |answer |is: |All |of |the |above
Which |of |the |following |is |a |benefit |of |a |prescription |drug |policy?
Select |one:
a. |Prescriptions |are |usually |free.
b. |Prescriptions |are |for |a |set |price.
c. |Prescriptions |are |for |a |set, |lower |price.
d. |Prescriptions |can |be |refilled |at |any |time. |- |correct |answer |Under |a |prescription |policy, |prescription |
drugs |are |not |only |at |a |set |price, |but |a |much |lower |price |- |usually |$2, |$3 |or |$5, |regardless |of |the |
actual |cost |of |the |drug.
The |correct |answer |is: |Prescriptions |are |for |a |set, |lower |price.
Which |of |the |following |is |part |of |the |loss |of |earnings |test |for |disability?
Select |one:
a. |Inability |to |perform |duties |of |the |insured's |own |occupation |for |2 |to |5 |years
b. |Inability |to |perform |the |duties |of |any |suitable |occupation
c. |Both |of |the |above
,d. |None |of |the |above |- |correct |answer |The |loss |of |earnings |test |for |disability |includes |both |the |
inability |to |perform |duties |of |the |insured's |own |occupation |for |2 |to |5 |years |and |the |inability |to |
perform |the |duties |of |any |suitable |occupation.
The |correct |answer |is: |Both |of |the |above
If, |after |a |hearing, |the |Superintendent |finds |that |an |individual |has |engaged |in |an |unfair |practice, |the |
Superintendent |can |take |all |the |following |actions, |EXCEPT:
Select |one:
a. |Suspend |the |individual's |license
b. |Revoke |the |individual's |license
c. |Assess |a |civil |penalty
d. |Jail |the |individual |- |correct |answer |When |an |individual |is |found |to |have |committed |an |unfair |trade |
practice, |the |Superintendent |has |the |power |to |revoke, |suspend, |refuse |to |issue |or |renew, |and |assess |
civil |penalties |and |administrative |costs |incurred |by |the |department.
The |correct |answer |is: |Jail |the |individual
What |benefits |might |your |disability |policy |pay |if |you |have |experienced |an |accident, |but |you |can |work
|part |time |as |you |recover |fully?
Select |one:
a. |Regular |benefits |for |the |first |six |months |and |a |reduced |benefit |thereafter
b. |Partial |benefits |based |on |ability |to |perform |certain |duties
c. |No |benefits, |since |you |can |perform |some |of |the |duties |of |your |occupation
d. |A |delayed |benefit |if |your |condition |does |not |improve |- |correct |answer |Answer: |C
For |which |of |the |following |types |of |employees |is |an |employer |group |health |plan |considered |the |
primary |plan?
Select |one:
a. |Disabled |employees
b. |Employees |with |kidney |failure
c. |Employees |age |65 |or |older
d. |All |of |the |above |- |correct |answer |Answer: |A
,A |vision |plan |will |usually |include |benefits |for |all |of |the |following, |EXCEPT:
Select |one:
a. |Annual |eye |examination
b. |Eye |surgery
c. |Contact |lenses
d. |Eyeglass |frames |- |correct |answer |Vision |plans |will |include |periodic |eye |exams, |glasses, |and |
contacts.
The |correct |answer |is: |Eye |surgery
Which |of |the |following |is |one |of |the |major |differences |between |private |and |government |insurance?
Select |one:
a. |Private |insurance |can |deny |coverage |to |individuals.
b. |Government |insurance |can |be |either |federal |or |state.
c. |Both |private |and |government |have |disability |coverage.
d. |Government |insurance |is |more |efficiently |run |- |correct |answer |In |order |to |stay |in |business, |private |
insurance |can |deny |coverage |to |high-risk |individuals |and |minimize |their |losses.
The |correct |answer |is: |Private |insurance |can |deny |coverage |to |individuals.
Where |must |the |wording |'Accident |Only |Plan' |be |prominently |displayed |on |an |accident |only |policy?
Select |one:
a. |It |must |be |in |bold |type |in |the |exclusions |section.
b. |It |must |be |in |bold |type |in |the |time |limit |for |certain |defenses |section.
c. |It |must |be |in |bold |type |on |the |front |page |of |the |policy.
d. |It |must |be |in |bold |type |on |a |special |insert |before |delivery. |- |correct |answer |To |avoid |confusion, |
ACCIDENT |ONLY |or |similar |wording |must |be |prominently |displayed |on |the |front |page |of |an |accident |
policy.
The |correct |answer |is: |It |must |be |in |bold |type |on |the |front |page |of |the |policy.
All |of |the |following |are |commonly |used |when |investigating |the |insurability |of |an |applicant, |EXCEPT:
, Select |one:
a. |An |attending |physician's |statement
b. |A |credit |report
c. |Contacting |the |Medical |Information |Bureau |(MIB)
d. |Talking |to |the |neighborhood |watch |- |correct |answer |Insurers |typically |utilize |the |physician's |
statement, |credit |report |and |MIB |when |determining |insurability |of |an |applicant. |They |do |not |talk |to |
the |neighborhood |watch.
The |correct |answer |is: |Talking |to |the |neighborhood |watch
Insurance |contracts |pay |for |losses |on |an:
Select |one:
a. |Indemnity |basis
b. |Cash |payment |basis
c. |Valued |basis
d. |All |of |the |above |- |correct |answer |Insurance |contracts |pay |for |losses |on |an |indemnity, |valued |or |
cash |basis.
The |correct |answer |is: |All |of |the |above
Using |an |insurance |license |to |sell |mainly |to |relatives |is |referred |to |as:
Select |one:
a. |A |familial |business
b. |An |incestuous |business
c. |A |paternal |business
d. |A |controlled |business |- |correct |answer |An |agent |is |not |allowed |to |use |a |license |for |the |principal |
purpose |of |procuring |controlled |business |(insurance |sold |to |relatives, |employers, |or |employees).
The |correct |answer |is: |A |controlled |business
When |presenting |long-term |care |or |Medicare |Supplement |plans, |it |is |necessary |to |provide |the |
prospect |with |a:
Select |one:
